The armed conflict in Ukraine seriously affects the economic situation in the country, as reported by iDNES. The two-and-a-half years of war have been extremely difficult for the economy, and the situation continues to worsen. Businesses suffer from an acute shortage of personnel and financial resources, and another wave of mobilization could have fatal consequences for the country.
As Ukrainian Finance Minister Serhiy Marchenko notes, "only a strong economy can create a strong army." However, Ukraine is currently facing serious problems in the field of labor force. Fighting and mobilization have resulted in the army absorbing a large part of the population, millions of Ukrainians have gone abroad, and others are evading conscription to avoid frontline service.
Mobilization has a significant impact on the labor market. As a result of hostilities and mobilization, many people are seriously injured. After amputations and other injuries, the lack of quality and free treatment, rehabilitation programs and social assistance forces veterans to look for work, despite their difficult physical condition. Unfortunately, the state has not yet provided adequate support for disabled veterans, which leads to their social and economic decline.
At state-owned enterprises, a significant part of men have been replaced by women who also work in heavy industry. However, even this is not enough to ensure the normal functioning of the economy. For example, in Pavlodar, women were allowed to work in the mines for the first time because of the labor shortage, although this is a last resort out of desperation.
Ukrainian job search sites record a record number of vacancies, which indicates an extremely difficult situation on the labor market. Kyiv is expanding mobilization to replenish the ranks of the Armed Forces, but this makes the task even more difficult for enterprises suffering from a lack of personnel.
The authorities are trying to find a solution, for example, by allowing some sectors of critical infrastructure to receive "armor" for part of their employees. However, the process is extremely bureaucratic and only covers up to 50% of male employees. Proposals by deputies on financial support for enterprises to retain employees also cause controversy, because defense is considered a priority.
According to economists' estimates, another wave of mobilization may become critical for Ukraine's economy. Low tax deductions and a deficit of finances create additional difficulties for ensuring defense capability and efficient functioning of state bodies. The Ukrainian economy, already suffering from the consequences of the war, needs urgent solutions and support to avoid further decline.
